Caring for an Aging Parent

THIS IS THE SECOND IN A SERIES OF ARTICLES THAT WE'LL BE POSTING DISCUSSING TOPICS RELATING TO INCAPACITY.

Caring for your aging parents is something you hope you can handle when the time comes, but it's the last thing you want to think about. Whether the time is now or somewhere down the road, there are steps that you can take to make your life (and theirs) a little easier. Some people live their entire lives with little or no assistance from family and friends, but today Americans are living longer than ever before. It's always better to be prepared.

Mom? Dad? We need to talk

The first step you need to take is talking to your parents. Find out what their needs and wishes are. In some cases, however, they may be unwilling or unable to talk about their future. This can happen for a number of reasons, including:

• Incapacity
• Fear of becoming dependent
• Resentment toward you for interfering
• Reluctance to burden you with their problems

If such is the case with your parents, you may need to do as much planning as you can without them. If their safety or health is in danger, however, you may need to step in as caregiver. The bottom line is that you need to have a plan. If you're nervous about talking to your parents, make a list of topics that you need to discuss. That way, you'll be less likely to forget anything. Here are some things that you may need to talk about:

• Long-term care insurance: Do they have it? If not, should they buy it?
• Living arrangements: Can they still live alone, or is it time to explore other options?
• Medical care decisions: What are their wishes, and who will carry them out?
• Financial planning: How can you protect their assets?
• Estate planning: Do they have all of the necessary documents (e.g., wills, trusts)?
• Expectations: What do you expect from your parents, and what do they expect from you?

Preparing a personal data record

Once you've opened the lines of communication, your next step is to prepare a personal data record. This document lists information that you might need in case your parents become incapacitated or die. Here's some information that should be included:

• Financial information: Bank accounts, investment accounts, real estate holdings
• Legal information: Wills, durable power of attorneys, health-care directives
• Funeral and burial plans: Prepayment information, final wishes
• Medical information: Health-care providers, medication, medical history
• Insurance information: Policy numbers, company names
• Advisor information: Names and phone numbers of any professional service providers
• Location of other important records: Keys to safe-deposit boxes, real estate deeds

Be sure to write down the location of documents and any relevant account numbers. It's a good idea to make copies of all of the documents you've gathered and keep them in a safe place. This is especially important if you live far away, because you'll want the information readily available in the event of an emergency.

Where will your parents live?

If your parents are like many older folks, where they live will depend on how healthy they are. As your parents grow older, their health may deteriorate so much that they can no longer live on their own. At this point, you may need to find them in-home health care or health care within a retirement community or nursing home. Or, you may insist that they come to live with you. If money is an issue, moving in with you may be the best (or only) option, but you'll want to give this decision serious thought. This decision will impact your entire family, so talk about it as a family first. A lot of help is out there, including friends and extended family. Don't be afraid to ask.

Evaluating your parents' abilities

If you're concerned about your parents' mental or physical capabilities, ask their doctor(s) to recommend a facility for a geriatric assessment. These assessments can be done at hospitals or clinics. The evaluation determines your parents' capabilities for day-to-day activities (e.g., cooking, housework, personal hygiene, taking medications, making phone calls). The facility can then refer you and your parents to organizations that provide support.

If you can't be there to care for your parents, or if you just need some guidance to oversee your parents' care, a geriatric care manager (GCM) can also help. Typically, GCMs are nurses or social workers with experience in geriatric care. They can assess your parents' ability to live on their own, coordinate round-the-clock care if necessary, or recommend home health care and other agencies that can help your parents remain independent.

Get support and advice

Don't try to care for your parents alone. Many local and national caregiver support groups and community services are available to help you cope with caring for your aging parents. If you don't know where to find help, contact your state's department of eldercare services. Or, call (800) 677-1116 to reach the Eldercare Locator, an information and referral service sponsored by the federal government that can direct you to resources available nationally or in your area. Some of the services available in your community may include:

• Caregiver support groups and training
• Adult day care
• Respite care
• Guidelines on how to choose a nursing home
• Free or low-cost legal advice

Once you've gathered all of the necessary information, you may find some gaps. Perhaps your mother doesn't have a health-care directive, or her will is outdated. You may wish to consult an attorney or other financial professional whose advice both you and your parents can trust.

PART THREE -- Next Wednesday's article is "Common Incapacity Documents" and "Medicare, Medigap, and Medicaid"

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Market Week: October 12, 2009

The Markets

Up, up, and away: After a two-week breather, equity indexes once again found new life. Back-to-back triple-digit increases kicked off the week and helped launch the Dow toward Friday's new high for the year, though it still trails the other major indexes. The S&P 500 put together a string of five straight up days, ending the week only a fraction of a point from its September 2009 high, while the Nasdaq held onto its lead year-to-date. Contributing to the euphoria were promising initial earnings reports from several companies as well as sales figures from some large retailers that improved over last year's dismal figures.

Market/Index	2008 Close	Prior Week	As of 10/9/09	Week Change	YTD Change
DJIA	8776.39	9487.67	9864.94	3.98%	12.40%
NASDAQ	1577.03	2048.11	2139.28	4.45%	35.65%
S&P 500	903.25	1025.21	1071.49	4.51%	18.63%
Russell 2000	499.45	580.20	614.92	5.98%	23.12%
Global Dow	1526.21	1832.87	1913.14	4.38%	25.35%
Fed. Funds	.25%	.25%	.25%	0 bps	0 bps
10-year Treasuries	2.24%	3.22%	3.38%	16 bps	114 bps

Last Week's Headlines

• More companies in the services sector grew than contracted in September, according to the Institute for Supply Management. For the first time in a year, the ISM's index edged over the crucial 50% level.
• The Reserve Bank of Australia raised hopes about economic recovery when it raised its key interest rate by 25 basis points to 3.25%. The surprise move also prompted questions about whether and how soon other countries might follow suit. However, both the European and British central banks left rates unchanged, and the Federal Reserve Bank has said the target U.S. rate is unlikely to go up in the near future.
• The U.S. dollar took a beating as gold hit an all-time intraday high amid speculative chatter (later denied) about oil-producing countries potentially conspiring to work toward pricing oil in a basket of currencies instead of the dollar.
• The U.S. trade deficit unexpectedly fell in August. The gap between exports and imports shrank 3.6% after three straight months of increases. Exports were up 0.2%, while imports dropped for the first time since May.
• Overall consumer credit shrank at an annual rate of 5.8% in August. Revolving credit, such as credit card balances, dropped even more (down 13% from last year).

Eye on the Week Ahead

Earnings season will pick up steam, providing increased clarity about whether or not this week's early reports were a good indicator of overall corporate health. The Commerce Department's retail sales statistics will be closely watched as an indicator of consumer spending. The Treasury-subsidized Public Private Investment Partnership (PPIP) will begin buying mortgage-backed toxic assets from banks and insurance companies.

Key data releases: Retail sales (10/14); inflation (10/15); overseas purchases of Treasury debt, industrial production, consumer sentiment (10/16).

Data source: Includes data provided by Brounes & Associates. All information is based on sources deemed reliable, but no warranty or guarantee is made as to its accuracy or completeness. Neither the information nor any opinion expressed herein constitutes a solicitation for the purchase or sale of any securities, and should not be relied on as financial advice. Past performance is no guarantee of future results.

The Dow Jones Industrial Average (DJIA) is a price-weighted index composed of 30 widely traded blue-chip U.S. common stocks. The S&P 500 is a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. The NASDAQ Composite Index is a market-value weighted index of all common stocks listed on the NASDAQ stock exchange. The Russell 2000 is a market-cap weighted index composed of 2000 U.S. small-cap common stocks. The Global Dow is an equally weighted index of 150 widely traded blue-chip common stocks worldwide. Market indexes listed are unmanaged and are not available for direct investment.

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